Financial Risk
Capital Risk - Check!
Capital risk is the risk that the initial amount invested may be lost (also known as "the capital").
Currency Risk - Check!
Currency risk is the risk associated with the foreign currency movement affecting the value of an asset if the invested assets are being held in that currency.
Liquidity Risk - Check!
Liquidity risk is the risk that an investment may not be easily traded, otherwise known as liquid, (e.g. commercial property) or the market has a small capacity and may therefore take time to sell.
Business Risk - Check!
The risk that a company or project will not have adequate cash flow to meet financial obligations; thus causing the business to file for bankruptcy.
Credit Risk - Check!
Credit risk, also called default risk, is the risk associated with a borrower going into default (not making payments as promised).
Equity Risk - Check!
Equity risk is the risk that stock prices and/or the implied volatility will change.
Interest Rate Risk - Check!
Interest rate risk is the risk that interest rates and/or the implied volatility will change.
Commodity Risk - Check!
Commodity risk is the risk that commodity prices (e.g. corn, copper, crude oil) and/or implied volatility will change.
In sharp contrast, the following link is a comprehensive list of all safe havens. I can say without reservation that each and every one of them will guarantee you nights filled with blissful sleep as you ride out the economic storm.
Safe Haven List
ICE: Mortgage Delinquency Rate Increased Year-over-year in October
-
From ICE: ICE First Look at Mortgage Performance: Serious delinquencies hit
17-month high while foreclosure activity remains historically muted
• At 3.45% ...
2 hours ago
4 comments:
Stag,
HAHAHA! I won't tell you how many times I clicked on the "safe haven" link before I figured it out.
You can't fool me thrice.
mab,
I'm glad the 10 minutes it took me to think up that list was not wasted. :)
Two words: rhino horns.
Two more: bear bile.
Yep, invest in Oriental Nostrums - what could go wrong?
dearieme,
Bile bear
It would seem that I am taking excessive risks just being bearish!
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